Developing breakthrough innovations

The LEAD User Method was developed by Professor Eric von Hippel at MIT, the Institute of Technology in Cambridge, Massachusetts, USA, in the 1980s. It is based on the empirical realization that innovations are often not initiated by manufacturers, but that users are often the driving force behind developments. It turns out that these innovative activities are not distributed randomly, but are concentrated in a certain group of particularly progressive users, customers (LEAD Users).

The aim of this method, which follows the approach of Open Innovation, is to develop products, processes, services or business models that are particularly close to the market, customer-oriented and geared to the end user.

So-called LEAD Users are integrated into this development process as early as possible. These are progressive users or inventors, pioneers in their field, who discover needs today, before the masses will tomorrow. LEAD Users benefit particularly from innovation because they are dissatisfied with the existing products or processes in the market and they therefore profit greatly from a new product, a new development, an innovation.

The method ensures that the products and processes best meet the future needs of the users.

Change is not an innovation

Innovation is a term with a positive connotation and therefore nobody does NOT want to be innovative. However, many companies describe even the smallest change in their product, or service, as innovation, with complete disregard as to whether this change also means an improvement for the customer, or the company itself. Even if such an innovation improves something, it is an exaggeration to speak of it as an innovation. Inventions must first prove themselves in the market if they are to be considered innovations.

Precise search fields & the definition of a LEAD User profile

In phases 1 & 2 of the LEAD User Project the most important challenges lie in the LEAD User Search. With the right search field definition and fine-tuning, the basis of the project is laid. A search field defines the content area of the search for innovation ideas, based on the formulated project field. Here it is important to find a balance with regards to the breadth of content and the thematic focus of the field. If the search field is too large, i.e. formulated too roughly, it is possible that information and ideas remain arbitrary and are not specific enough to identify LEAD Users for a concrete application development in a subsequent step.

The definition of the desired LEAD User profile must also be considered in this phase. For the successful search for LEAD Users, the selection criteria must be defined in advance so that the specific users can be filtered from the mass of users. These criteria include trend leadership and the need for a specific solution.

Working with the right analogous industries or fields

In addition to the target market, analogous industries are particularly well suited for looking outside of the box and for providing valuable input from outside. For example, those fields of work and industries that have a higher degree of technological development than your own are best. The real challenge here, however, lies in Phase 2 (trend and needs analysis) in the specific determination of the analogous fields of application for one's own development project, one's own industry.

The right understanding of the term analogy is crucial. In practice, one has to deal with other economic sectors than one's own company, but in which the same technology is used in the target field or one in which similar problems and questions exist. LEAD Users can use their knowledge from these domains in an interactive value-added process and thus considerably expand the scope of possible ideas and solutions.

Recognition of needs and solution information

It is, of course, indispensable to find and win a LEAD User in the complex research activity of the LEAD User Search. It is possible to recognize whether the person in question is a "progressive user" within the framework of a multi-part telephone interview procedure, the LEAD User Interview. The potential LEAD User is contacted in advance, informed about the project, made curious and selected for a second telephone call.

During this second call, the potential LEAD User is then asked about market trends and emerging customer needs. In addition, if he is a LEAD User, he reveals specific needs and solution information and talks about the core functions, or characteristics, that a new product or service must have, in order to meet the focused customer needs.